Richter Q1 Earnings Rise 6% to HUF 39 bln


Image by LaMography/Móni Lázár

First-quarter net income of Hungarian pharmaceutical company Gedeon Richter rose 6% year-on-year to HUF 39.2 bln, news agency MTI writes, citing an earnings report released ahead of the opening bell on Friday.

Earnings per share came to HUF 210 for the period.

Revenue climbed 25% to HUF 209.7 bln.

The direct cost of sales rose at a slower pace, increasing 14% to HUF 82.3 bln, lifting gross profit by 33% to HUF 127.4 bln.

Sales and marketing costs rose 14% to HUF 36.9 bln and R&D spending edged up 1% to HUF 17.2 bln.

Operating profit jumped 44% to HUF 54.1 bln.

Richter booked a net financial loss of HUF 17.1 bln for the quarter, compared to a net financial gain of HUF 1.3 bln in the base period. Just HUF 4 bln of the loss was realized.

The United States was Richter's biggest market in Q1: pharma sales there climbed 45% to HUF 45.8 bln, lifted by a HUF 40.6 bln royalty for Vraylar, the brand name of Richter's antipsychotic cariprazine.

Pharma sales in Russia jumped 70% to HUF 33.1 bln. 

Richter pointed to market intelligence data suggesting a slowdown in pharma market sales volume in Russia that was offset by higher rouble-denominated turnover driven by price increases implemented at the end of Q1 2022. Richter continues to "closely monitor" its exposure and the payment discipline in Russia.

Pharma sales in Hungary rose 16% to HUF 13.3 bln.

Richter noted that a procedure implementing the suspension of 35 products it sells in Ukraine was initiated in October, after legislation was amended to allow the revocation of licenses for companies that operate manufacturing units and pay taxes in Russia. The practical implementation of the measure did not take place by the end of Q1 and sales of Richter's registered products have continued without impediment, so far, the company added.

Cariprazine, also marketed under the brand name Reagila, was Richter's top-selling product in Q1: sales increased 49% to HUF 43.6 bln.

Oral contraceptives were the runner-up, with sales climbing 46% to HUF 36.7 bln.


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